Polymarket, a crypto-based prediction market platform based in New York, is making strides to raise $50 million in new funding. The ambitious startup is also exploring the potential issuance of its own token, which could allow investors who participate in the proposed funding round to obtain warrants for purchasing these tokens if the issuance plan materializes.
This new token is envisioned to empower users in validating the outcomes of real-world events. There is still uncertainty regarding whether this upcoming token will act as a complementary way to the existing UMA Protocol, which serves as the oracle service for Polymarket, resolving markets and adjudicating disputes through community voting.
Polymarket’s documentation identifies it as oracle agnostic, showing its willingness to explore various technological solutions. Despite attempts, neither Polymarket nor UMA provided comments in response to requests for clarification. Earlier this year, in May, Polymarket reported raising a cumulative $70 million across two funding rounds, including a substantial $45 million Series B led by billionaire investor Peter Thiel’s Founders Fund.
However, details remain sparse on whether participants in the upcoming $50 million round would gain equity or merely access to token warrants. The valuation of Polymarket continues to be a topic of speculation as well. This year, Polymarket has positioned itself as a pivotal player within the realms of prediction markets and cryptocurrency.
The wagers placed on this platform are coded within smart contracts prioritized on the Polygon blockchain and settled in USDC, a stablecoin that maintains a 1:1 valuation with the US dollar. Recent data from Dune Analytics reveals that monthly trading volumes peaked at an unprecedented $472 million in August, with as much as $397 million in trades logged as of the latest Monday. As the U.S.
presidential election approaches, this subject has become the most sought-after betting topic, with nearly $1 billion currently staked on predictions. However, it's notable that due to regulatory constraints, Polymarket restricts access to users with U.S. IP addresses. Some American traders reportedly circumvent this ban via Virtual Private Networks (VPNs), allowing them to engage with the platform despite legal limitations. Polymarket's rise to prominence has sparked considerable debate, particularly regarding its impact on Kalshi, a regulated prediction market facing a legal dispute with the U.S.
Commodity Futures Trading Commission (CFTC) over the listing of contracts related to congressional control. The CFTC is in the process of contemplating regulations that could extend to prohibiting election event contracts across all exchanges they govern, thus potentially shifting the regulatory landscape to individual states. Recently, CFTC Chairman Rostin Benham disclosed that the agency is closely monitoring offshore election-betting platforms that offer services to U.S.
clients. He underscored that any organizations, including Polymarket, found in violation of legal guidelines would be subjected to civil enforcement measures aimed at ceasing such activities..